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sladkih [1.3K]
3 years ago
6

A company issued 6%, 15-year bonds with a face amount of $67 million. The market yield for bonds of similar risk and maturity is

6%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Chemistry
1 answer:
mr Goodwill [35]3 years ago
8 0

Answer:

Bond is expected to be sold at the face value .

Explanation

In cases where market interest rate of bond is lower than coupon rate of bond, the bond is issued at a premium. Reason being that company is giving higher  interest rate on bond , this higher rate of interest  increases the price of bond, thus, bond is issued at premium.

In a scenario where market interest rate of bond is higher than coupon rate of bond, the bond is issued at Discount. This is so in that company is not returning more than market rate, therefore, to compensate that, the sale value of bond is usually lower than face value.

If the Market rate and coupon rate is equal , then bond will be issued at face value.

Considering the given question, Coupon rate of bond is 6% and market rate is also 6%. In this question , Market yield is considered to be market rate .

Therefore, there is no need to calculate present value of interest payments and redemption value at maturity to calculate price of bond.

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Answer:

C) the study of the composition of the atom.

Explanation:

A research can be defined as a systematic investigation or careful consideration of study with respect to a particular problem using scientific methods such as collection of data, documenting critical information, analysis of data, and the establishment of facts in order to reach new conclusions.

Similarly, a basic research is an approach to research that's typically theoritical and it's aimed at developing a theory, searching for the truth or gain a better understanding about a phenomenon, subject, or basic laws on nature.

In this context, an example of basic research is the study of the composition of the atom.

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2 years ago
Differentiate benzene and cyclohexane
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3 years ago
Write a net ionic equation for the overall reaction that occurs when aqueous solutions of sodium hydroxide and hydrosulfuric aci
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Answer:

2OH-(aq) + 2H+(aq) → 2H2O(l)

Explanation:

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hydrosulfuric acid = H2S

Step 2: The unbalanced equation

NaOH(aq) + H2S(aq) → Na2S(aq) + H2O(l)

Step 3: Balancing the equation

On the left side we have 1x Na (in NaOH), on the right side we have 2x Na (in Na2S). To balance the amount of Na on both sides, we have to multiply NaOH on the left side by 2.

2NaOH(aq) + H2S(aq) → Na2S(aq) + H2O(l)

On the left side we have 4x H (2x in NaOH and 2x in H2S), on the right side we have 2x H (in H2O). To balance the amount of H on both sides, we have to multiply H2O on the right side by 2. Now the equation is balanced.

2NaOH(aq) + H2S(aq) → Na2S(aq) + 2H2O(l)

Step 4: The net ionic equation

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8 0
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Answer:

1) 0 N

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